HOUSTON - A 20-count federal indictment has been unsealed following the arrest of the owner of KMD Healthcare Services Inc., and his brother on charges they engaged in a conspiracy involving fraudulent Medicare and Medicaid billing for ambulance services, announced U.S. Attorney Kenneth Magidson.
Authorities arrested Melvin Davies, 28, and his brother Kevin Davies, 27, both of Houston today. They are expected to make their initial appearances before U.S. Magistrate Judge Frances H. Stacy tomorrow at 10:00 am.
The indictment alleges the defendants billed Medicare and Medicaid for ambulance services that were not medically necessary and not provided, as well as ambulance transport miles that were not provided. Melvin and Kevin Davies allegedly operated the ambulance business from their gated community townhouse and billed for ambulance services provided by vans and not ambulances. According to the indictment, Medicare and Medicaid were billed for services that were not documented on ambulance transport run sheets. The Davies brothers are also charged with spending more than $10,000 of criminally derived property.
If convicted of any of the charges, each defendant faces up to 10 years in federal prison and a possible $250,000 maximum fine.
The charges are the result of a joint investigation conducted by the FBI, IRS – Criminal Investigation and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Julie Redlinger is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.